Stocks bounce back from deep loss

Stocks rebounded as investors used low prices as an opportunity to buy shares, a day after the stockmarket suffered a massive slide.
The benchmark general index of Dhaka Stock Exchange (DGEN) gained 228 points, or 4.02 percent, to close at 5,904 points.
Dhaka stocks on Sunday plunged by more than 5 percent or 313 points in reaction to the next fiscal year's budget that offered no incentives to the stockmarket.
The selective price index of Chittagong Stock Exchange gained 368 points, or 3.62 percent, to close at 10,551 points.
However, after resumption of the day's trading at 11:00am, the DGEN experienced a 68-point fall in just five minutes to dip to 5,608.
A rumour was heard in the market that the Securities and Exchange Commission will issue a directive for directors of listed companies to hold 20 percent shares of individual companies.
A top SEC official, however, said they did not hold any meeting on the issue, nor did they receive any direction from the ministry.
Saiful Islam, vice-chairman of BRAC EPL Investment, said the behaviour of the market seemed irrational as investors reacted on Sunday in a negative manner without any justification and investors yesterday realised that there is no reason to sell shares out of panic.
Islam said there is no reason investors should react negatively over any budget proposal.
Most of the investors went for buying of shares as they are trying to reap benefit from lower price of shares, said Islam. The investors should go for long-term investment in the stock market, he adds.
The banking sector gained 6.3 percent for the second time this month as the rumour of holding 25 percent stakes by the directors pulled the banking sector and other major sectors.
The other major sectors such as non-bank financial institutions gained 4.05 percent and fuel and power sector 1.67 percent respectively.
Grameenphone, which represents the telecoms sector, gained 2.92 percent on the day.
Of the total 254 issues traded on the DSE floor, 247 advanced and seven declined.
Turnover on the DSE stood at Tk 567 crore, down by 4.9 percent from the previous day's turnover.
United Commercial Bank topped the turnover leaders with 74.23 lakh shares worth Tk 39.74 crore.
The other turnover leaders were United Airways, National Bank, Uttara Bank, Aftab Automobiles, People's Leasing and Financial Services, Pubali Bank, City Bank, MI Cement Factory and BSRM Steels.
Pubali Bank was the biggest gainer of the day, posting 9.97 percent rise from the previous day, while the ICB AMCL Mutual Fund was the worst loser, slumping by 2.67 percent.